Welcome back everyone.. it has been a while since the last update, but I don’t want you to miss out on what this system has been delivering in the last 4 weeks. I will just let the charts speak for themselves.. the only thing for a future outlook I would like to mention, is that a lot of instruments are running up insanely for that correction of the deep drops. Those are very tradable 4h moves to the upside, and now the angulation to the alligator is so steep, that the next divergent bar should be a good place to try to sell. We’ll see how it goes.. here come the charts..

Altogether the drop in the Indices was quite profitable. I was lucky enough to choose to trade it on the Dax – as it turns out it was the most moving of the Indices. As is happening in various FX pairs right now, the downmove after 5 waves had finished on the weekly timeframe, was tremendous and happened very fast, as usual.

I will let the charts speak for themselves this time .. it looks like we could be entering quite a selling period in many instruments these days. Euro pairs were also down quite a bit during the end of last week.. if the mentioned buy signals will still appear, we will have to see.

The Indices continue to trade weak after the last profit on some short positions had been banked. And as it turns out, there is a clear wave count in the internal charts. Obviously, today’s weakness is due to the 4h wave 5 that esp. the Dax is finishing off these days. If you sold at the divergent bar ending wave 4, you are in profit of more than 400 points since thursday. Once again, just one position. There were 2 more fractals that would easily double that profit. However, looking at the waves we most likely reached some sort of low point here and I am looking for a bullish divergent bar on the daily chart during this trading week. A couple of hundred points to the upside could be the result of 5 waves ending on the 4h timeframe.

As the headline states, the Indices yielded insane profits during the past 2 trading weeks. If you took the fractal sell signals that I indicated in the chart in an earlier blog entry, you made a profit of more than 2000 points in just 1,5 weeks. Moves like this don’t occur very often, thankfully in the Indices, but when they do and you are on track with the wave count and the fractal breakout signals, a very quick but also quite large profit can be the result, as these trades show. As for the current development of the Indices, I don’t think anything good will happen in the coming days. Those markets need more correction time after dropping so heavily. The Dax has lost 20% in the mentioned time period, therefore patience is important once again.

As I mentioned already in a tweet late last week, I was expecting the Indices to finally drop and end the farce that has obviously been going on since 08/09. 5 waves are done on the weekly chart in instruments like Dax (chart above), SP500 and Dow. Other Indices such as the Nikkei are also in a weekly situation indicating more downwards movement. On the whole front, stock markets seem to have changed their direction in just the first 3 trading days of this week. I am assuming this will be a longer correction on the weekly. It may take until the end of the year … but who knows. My first guess here would be that we are currently trading in the A wave of a weekly a-b-c correction. However, since we are only at the beginning of the correction, wave scenarios will change. For now shorts in those instruments are yielding tremendous profits in no-time. If you are short in the Dax at the 2 indicated fractals you are in profit of about a 1000 points within 3 trading days as of now.

An interesting trading week is behind us once again. The Eurusd seems to finally turn up to move through this wave 5. A divergent bar marked the end of that last wave C of the correction and thursday this week had the momentum to put price up quite a bit. Even a buy-fractal has been hit already and we’ll see how far and smooth this trend will be running. If you are long from the divergent bar on the daily chart you are in profit a couple of hundred pips already. Even the fractal-buy has been a very early entry in this case making good profits now.